How Much Will My Taxes Be In Retirement (Real Example)
Вставка
- Опубліковано 5 лип 2024
- How Much Will My Taxes Be In Retirement (Real Example)
🔍 Understanding Retirement Taxation
Retirement tax planning is a critical part of your financial and retirement strategy. While it can be complex, taking the time to understand how taxes will impact your retirement can make a significant difference in your retirement well-being.
💡 Key Considerations:
Retirement Account Types: Different retirement accounts (e.g., 401k, IRA, Roth IRA) have varying tax implications in retirement. Understanding the tax treatment of each can help you make informed decisions in retirement.
Social Security Benefits: A portion of your Social Security benefits may be subject to federal income tax, depending on your total income and filing status in retirement.
Retirement Income Sources: Your sources of retirement income, such as pensions, annuities, or investment income, can have different tax consequences in retirement.
State Taxes: Be aware of how state taxes can impact your retirement income. State tax laws vary widely, and some states are more tax-friendly to retirees than others.
Tax-Efficient Withdrawal Strategies: Proper withdrawal strategies can help minimize your tax burden in retirement. Consider working with a financial advisor to create a tax-efficient retirement income plan.
📊 Planning Ahead
It's never too early to start planning for your retirement taxes. Being proactive and informed can lead to a more comfortable and financially secure retirement.
*Free Retirement Download: The Checklist to Retirement:* 📊
pearlwealthgroup.com/
Ready to schedule your virtual consultation, click here: pearlwealthgroup.com/contact/ or email us at info@pearlwealthgroup.com
**Enroll In Our Course: Can I Retire: A Foundation To Your Retirement Journey: drew-s-site-958e.thinkific.co... ** 🖥️
Retirement income strategies and retirement income planning are two big pieces to anyones retirement planning calculator. Whether you are wanting to know strategies for "retirement planning at 30", "retirement planning at 40", "retirement planning at 50", or even "retirement planning at 60" understanding how much retirement income that you want versus how much you need gives you a roadmap to follow to and through retirement.
Here at Pearl Wealth Group, we run a trademarked retirement investment and retirement income plan for individuals and families who are wanting to retire called "Your Financial EKG™." What we are trying to visualize is how long a persons retirement savings are going to last throughout retirement. If you are looking for early retirement planning tips or trying to saving for retirement in your 50's, You Financial EKG™ is a great tool to help you understand where you are retirement planning. Retirement planning and retirement income strategies shouldn't be complicated. They should just be done right.
Click Here For More Retirement Planning Videos: bit.ly/3wH3mgb 🙌
**Ready to get your personalized Financial & Retirement EKG: pearlwealthgroup.com/ **🚀
**Visit our Website: pearlwealthgroup.com/ ** 🖥
**Connect with us on Facebook: / pearlwealthgroup ** 👍
**Follow and Connect with Drew on Linkedin: / drewblackston 🙌
**More Retirement Information Here: pearlwealthgroup.com/blog/ ** 🧐
**Meet Your Retirement Planning Team: pearlwealthgroup.com/about/ ** 😎
**Worried That Your Retirement Strategy Is Missing Something: pearlwealthgroup.com/services/ ** 🤔
❌ *Please make sure you talk with your CPA, Financial Advisor, Retirement Planner, or Investment Advisor Representative, before implementing any content from this channel. All videos are for informational and educational purposes only. None of the content, comments, responses, information, or any other item on this channel constitutes financial advice or recommendations. Please call Pearl Wealth Group at 813-807-5060 to go through your Retirement Income, Retirement Investments, or Retirement Plan in more detail.* ❌
Pearl Wealth Group
Drew Blackston, CRC® & RFC®
Office: 813-807-5060
Info@pearlwealthgroup.com
pearlwealthgroup.com/
Getting you to Retirement, through Retirement, & protecting YOUR ability to stay in Retirement!
#retirementplanning #retirement #financialfreedom
**Free Retirement Download: The Checklist to Retirement:** 📊
pearlwealthgroup.com/
Thank you (all). It's good to know taxable income is calculated a little bit differently in retirement than when you're working.
Well said!
Effective tax rate is 3.2% since you did not calculate their provisional income properly.
Thanks for the comment. We use professional tax software when calculating taxes. Hope that helps!
My company 401k plan just started allowing after tax contributions this year. After speaking to Fidelity I was shocked to find out that I could contribute up to $66k after tax to this plan and do a yearly roll into a Roth IRA if I made no pretax contributions and no employer contributions. Without this channel I wouldn’t have even known what to ask them. ❤
Glad to help!
The calculation of provisional income for taxable SS was not completed. The taxable SS would only be $22,150.
Thanks!
Glad all of mine is Roth. Abd ss benefits zero tax!! Yay
Good catch was thinking the same and would even lower total taxs owed by less than his (incorrect) example.
Should be $58,150 - standard deduction 28,700 = $29,450 of taxable income.
Total taxes owed $3094
3.2% ETR
Thanks for sharing your wonderful service.
Thanks for watching!
you are calculating that wrong. You use the provisional income to calculate the taxable income. the provisional income greater than - 32k from threshold 1 x .5 and provisional income greater than - 44k x .35 then add it to your AGI and that is your taxable income.
Thanks for watching!
Haha, love the Lee Corso reference
Not so fast!
I don't understand: They're Provision Income exceeds the IRS threshold of $44,000- so 85% of their SS is subject to taxation--
Provisional income thresholds for married taxpayers
PROVISIONAL INCOME TAXABLE SOCIAL SECURITY BENEFITS
Less than $32,000 None
$32,000 to $44,000 Lesser of a) 50% of benefits or b) 50% of provisional income above $32,000 (up to $6,000)
More than $44,000 Lesser of a) 85% of benefits or b) 85% of provisional income above $44,000 plus the amount from the box a
This was a fantastic video. I'm 40 and this was very very helpful.
Glad you enjoyed it!
You also used 12% tax rate on all there taxable income there is a 10% bracket on income up to $20,550 and anything above that to $83,550 is at 12%. and also the standard deduction for a married couple is $27,300 + $1,500 each for being 65 or older for a total of $30,700.
Sounds like you’re ready to start your own channel and share your information!
Just trying to help. 2022 1040 instructions page #32 worksheet@@yourfinancialekg
Great info as always
Thanks again!
@@yourfinancialekg 👍
Your tax/income calculation was wrong, the provisional income is used to determine how much of their social security is taxable, so once they crossed $44K they are in the 85% part versus the 50% that you used. So I believe their total income is $36k + $8k * 0.5 + $46k * 0.85 = $36k + $4k + $39.1k = $79.1k
Thanks for watching!
Talk to Drew on 28 Nov. Can’t wait!!
Thank you!!
Low income individual here and I was going to contribute all pretax instead of just contributing up the 3% company match and the rest to Roth. Being in the 12% bracket and not knowing future taxes I might as well lock in as much tax free growth as possible.
Keep in mind, if you are paying less taxes now being in a lower income bracket, you have an opportunity to put money into the Roth side without raising your current taxes and setting yourself up for tax free future income. Just a thought.
Doubt your in the 12% tax bracket with you saying you are a low income individual
@@Satjr35031 60k a year married filing jointly. As far as being low income that is debatable as to what is considered low or high income in regards to a household of 4.
Not all dividends are created equal, At 68 the standard deduction is larger than you show
Thanks for watching!
How does fica fit into this tax reduction?
It doesn’t
Your "tidbit" about putting as much in Roth as you can will cost the overwhelming amount of people to loose money
This is not a country of savers and most people pay less taxes in retirement including I bet your example couple
Maybe not John. I think taxes will be the single biggest issue in 10 years. GDP to debt ratio getting out of control. What do you think?
@@yourfinancialekg I think the US economy would tank if you raise taxes on anyone but the rich. Most people don't save so they would have to cut spending and that would tank US economy (and so high taxes for the average Joe won't happen
Plus I feel Social Security taxes on the working will have to rise, this will make raising general taxes even harder to do(we are a consumer economy if people don't consume the government gets less taxes)
Edit: my co workers barley make it now, more taxes means less spending and less spending means a recession and less tax revenue
There tax would be $2,857 using the IRS 1040 instructions. If John and Cindy were to reduce there IRA distributions to $1,750 a month they would owe no taxes at all.
Awesome!
where does 28700 comfrom, it should 27700+1500+1500 =30.7k
What if you have a private or a government pension?
Sounds like another video idea 💡
Drew , I am not sure you did this correctly -- the provisional income is used to check against being greater than the $44,000 for the up to 85% -- So how come you did not just take 85% of their Social Security and put that down for the sum total for their taxable income ??? Please respond. Thank you ! NIck
Thank you for the comment. I use a tax software when designing all video examples to be as accurate as possible. As with all information, please consult with your CPA, tax accountant, or financial advisor before making any decisions. The purpose of this video was strictly informational and to show how taxes are different among various income sources.
I would touch the Roth IRA for last in retirement. No forced RMDS and let it grow!
Yes exactly!
Not everyone is married, yet that's rarely discussed.
Correct! That is why I do a lot of dual scenarios and individual scenarios. Thanks for watching!